Securities and Exchange Commission
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d/16
of the Securities Exchange Act of 1934
August 2017
AEGON N.V.
Aegonplein 50
2591 TV THE HAGUE
The Netherlands
Aegons condensed consolidated interim financial statements 2Q 2017, dated August 9, 2017, are included as appendix and incorporated herein by reference.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AEGON N.V.
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(Registrant) | ||||||
Date: August 10, 2017 | By | /s/ J.H.P.M. van Rossum | ||||
J.H.P.M. van Rossum | ||||||
Head of Corporate Financial Center |
Condensed Consolidated Interim Financial Statements 2Q 2017 |
1
|
Table of contents
Condensed consolidated income statement |
2 | |||
Condensed consolidated statement of comprehensive income |
3 | |||
Condensed consolidated statement of financial position |
4 | |||
Condensed consolidated statement of changes in equity |
5 | |||
Condensed consolidated cash flow statement |
6 | |||
Notes to the Condensed consolidated interim financial statements |
7 |
Unaudited |
2
|
Condensed consolidated income statement
|
||||||||||||||||||||
EUR millions | Notes | 2Q 2017 | 2Q 2016 | YTD 2017 | YTD 2016 | |||||||||||||||
Premium income |
4 | 5,770 | 5,702 | 11,479 | 11,538 | |||||||||||||||
Investment income |
5 | 2,002 | 2,073 | 3,866 | 4,008 | |||||||||||||||
Fee and commission income |
631 | 597 | 1,252 | 1,199 | ||||||||||||||||
Other revenues |
4 | 2 | 5 | 4 | ||||||||||||||||
Total revenues |
8,407 | 8,374 | 16,602 | 16,749 | ||||||||||||||||
Income from reinsurance ceded |
6 | 1,994 | 961 | 2,745 | 1,682 | |||||||||||||||
Results from financial transactions |
7 | 2,637 | 4,817 | 9,332 | 6,867 | |||||||||||||||
Other income |
8 | 318 | 54 | 327 | 55 | |||||||||||||||
Total income |
13,356 | 14,207 | 29,006 | 25,352 | ||||||||||||||||
Benefits and expenses |
9 | 12,541 | 13,823 | 27,596 | 24,724 | |||||||||||||||
Impairment charges / (reversals) |
10 | (3) | 20 | 10 | 60 | |||||||||||||||
Interest charges and related fees |
111 | 72 | 205 | 169 | ||||||||||||||||
Other charges |
4 | 682 | 4 | 682 | ||||||||||||||||
Total charges |
12,654 | 14,596 | 27,815 | 25,635 | ||||||||||||||||
Share in profit / (loss) of joint ventures |
38 | 28 | 73 | 59 | ||||||||||||||||
Share in profit / (loss) of associates |
6 | - | 5 | - | ||||||||||||||||
Income / (loss) before tax |
746 | (362) | 1,268 | (224) | ||||||||||||||||
Income tax (expense) / benefit |
(217) | (23) | (362) | (17) | ||||||||||||||||
Net income / (loss) |
529 | (385) | 907 | (242) | ||||||||||||||||
Net income / (loss) attributable to: |
||||||||||||||||||||
Owners of Aegon N.V. |
529 | (385) | 907 | (242) | ||||||||||||||||
Non-controlling interests |
- | - | - | - | ||||||||||||||||
Earnings per share (EUR per share) |
18 | |||||||||||||||||||
Basic earnings per common share |
0.24 | (0.20) | 0.41 | (0.15) | ||||||||||||||||
Basic earnings per common share B |
0.01 | (0.01) | 0.01 | - | ||||||||||||||||
Diluted earnings per common share |
0.24 | (0.20) | 0.41 | (0.15) | ||||||||||||||||
Diluted earnings per common share B |
0.01 | (0.01) | 0.01 | - |
Unaudited |
Condensed Consolidated Interim Financial Statements 2Q 2017 |
3
|
Condensed consolidated statement of comprehensive income
|
||||||||||||||||
EUR millions | 2Q 2017 | 2Q 2016 | YTD 2017 | YTD 2016 | ||||||||||||
Net income / (loss) |
529 | (385) | 907 | (242) | ||||||||||||
Other comprehensive income: |
||||||||||||||||
Items that will not be recassified to profit or loss: |
||||||||||||||||
Changes in revaluation reserve real estate held for own use |
1 | 3 | 1 | 2 | ||||||||||||
Remeasurements of defined benefit plans |
16 | (591) | 282 | (1,092) | ||||||||||||
Income tax relating to items that will not be reclassified |
(2) | 168 | (69) | 303 | ||||||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||
Gains / (losses) on revaluation of available-for-sale investments |
1,096 | 2,047 | 1,563 | 3,888 | ||||||||||||
Gains / (losses) transferred to the income statement on disposal and impairment of available-for-sale investments |
(1,044) | (2,115) | (1,123) | (2,145) | ||||||||||||
Changes in cash flow hedging reserve |
(759) | 523 | (755) | 827 | ||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserve |
(1,079) | 111 | (1,297) | (623) | ||||||||||||
Equity movements of joint ventures |
1 | 1 | (6) | 4 | ||||||||||||
Equity movements of associates |
(1) | - | (2) | 1 | ||||||||||||
Income tax relating to items that may be reclassified |
291 | (264) | 175 | (1,027) | ||||||||||||
Other |
3 | 1 | 5 | 7 | ||||||||||||
Total other comprehensive income / (loss) for the period |
(1,476) | (116) | (1,228) | 145 | ||||||||||||
Total comprehensive income / (loss) |
(947) | (501) | (322) | (96) | ||||||||||||
Total comprehensive income / (loss) attributable to: |
||||||||||||||||
Owners of Aegon N.V. |
(946) | (502) | (321) | (104) | ||||||||||||
Non-controlling interests |
(1) | 1 | (1) | 8 |
Unaudited |
4
|
Condensed consolidated statement of financial position | ||||||||||||
June 30, | Dec. 31, | |||||||||||
2017 | 2016 | |||||||||||
EUR millions | Notes | |||||||||||
Assets |
||||||||||||
Cash and cash equivalents |
12,880 | 11,347 | ||||||||||
Assets held for sale |
24 | 2,324 | 8,705 | |||||||||
Investments |
11 | 140,544 | 156,813 | |||||||||
Investments for account of policyholders |
12 | 198,278 | 203,610 | |||||||||
Derivatives |
14 | 7,148 | 8,318 | |||||||||
Investments in joint ventures |
1,666 | 1,614 | ||||||||||
Investments in associates |
272 | 270 | ||||||||||
Reinsurance assets |
13 | 19,949 | 11,208 | |||||||||
Deferred expenses |
16 | 10,565 | 11,423 | |||||||||
Other assets and receivables |
9,309 | 10,805 | ||||||||||
Intangible assets |
17 | 1,688 | 1,820 | |||||||||
Total assets |
404,625 | 425,935 | ||||||||||
Equity and liabilities |
||||||||||||
Shareholders equity |
20,409 | 20,913 | ||||||||||
Other equity instruments |
3,779 | 3,797 | ||||||||||
Issued capital and reserves attributable to owners of Aegon N.V. |
24,188 | 24,710 | ||||||||||
Non-controlling interests |
23 | 23 | ||||||||||
Group equity |
24,211 | 24,734 | ||||||||||
Subordinated borrowings |
765 | 767 | ||||||||||
Trust pass-through securities |
143 | 156 | ||||||||||
Insurance contracts |
19 | 112,913 | 119,569 | |||||||||
Insurance contracts for account of policyholders |
20 | 119,971 | 120,929 | |||||||||
Investment contracts |
21 | 17,569 | 19,572 | |||||||||
Investment contracts for account of policyholders |
22 | 80,900 | 84,774 | |||||||||
Derivatives |
14 | 8,294 | 8,878 | |||||||||
Borrowings |
23 | 14,867 | 13,153 | |||||||||
Liabilities held for sale |
24 | 2,344 | 8,816 | |||||||||
Other liabilities |
22,649 | 24,588 | ||||||||||
Total liabilities |
|
380,414
|
|
|
401,201
|
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Total equity and liabilities |
404,625 | 425,935 |
Unaudited |
Condensed Consolidated Interim Financial Statements 2Q 2017 |
5
|
Condensed consolidated statement of changes in equity
|
||||||||||||||||||||||||||||||||||||
EUR millions | Share capital 1 |
Retained earnings |
Revaluation reserves |
Remeasurement of defined benefit plans |
Other reserves |
Other equity instruments |
Issued capital and reserves 2 |
Non- controlling interests |
Total | |||||||||||||||||||||||||||
Six months ended June 30, 2017 |
||||||||||||||||||||||||||||||||||||
At beginning of year |
8,193 | 7,812 | 5,381 | (1,820 | ) | 1,347 | 3,797 | 24,710 | 23 | 24,734 | ||||||||||||||||||||||||||
Net income / (loss) recognized in the income statement |
- | 907 | - | - | - | - | 907 | - | 907 | |||||||||||||||||||||||||||
Other comprehensive income: |
||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: |
||||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use |
- | - | 1 | - | - | - | 1 | - | 1 | |||||||||||||||||||||||||||
Remeasurements of defined benefit plans |
- | - | - | 282 | - | - | 282 | - | 282 | |||||||||||||||||||||||||||
Income tax relating to items that will not be reclassified |
- | - | - | (69 | ) | - | - | (69 | ) | - | (69 | ) | ||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||||||||||||||||||||
Gains / (losses) on revaluation of available-for-sale investments |
- | - | 1,563 | - | - | - | 1,563 | - | 1,563 | |||||||||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal and impairment of available-for-sale investments |
- | - | (1,123 | ) | - | - | - | (1,123 | ) | - | (1,123 | ) | ||||||||||||||||||||||||
Changes in cash flow hedging reserve |
- | - | (755 | ) | - | - | - | (755 | ) | - | (755 | ) | ||||||||||||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves |
- | - | (250 | ) | 61 | (1,108 | ) | - | (1,297 | ) | - | (1,297 | ) | |||||||||||||||||||||||
Equity movements of joint ventures |
- | - | - | - | (6 | ) | - | (6 | ) | - | (6 | ) | ||||||||||||||||||||||||
Equity movements of associates |
- | - | - | - | (2 | ) | - | (2 | ) | - | (2 | ) | ||||||||||||||||||||||||
Income tax relating to items that may be reclassified |
- | - | 128 | - | 47 | - | 175 | - | 175 | |||||||||||||||||||||||||||
Other |
- | 5 | - | - | - | - | 5 | (1 | ) | 5 | ||||||||||||||||||||||||||
Total other comprehensive income
|
- | 5 | (437 | ) | 274 | (1,070 | ) | - | (1,228 | ) | (1 | ) | (1,228 | ) | ||||||||||||||||||||||
Total comprehensive income / (loss) for 2017 |
- | 912 | (437 | ) | 274 | (1,070 | ) | - | (321 | ) | (1 | ) | (322 | ) | ||||||||||||||||||||||
Issuance and purchase of (treasury) shares |
- | 142 | - | - | - | - | 142 | - | 142 | |||||||||||||||||||||||||||
Dividends paid on common shares |
(122 | ) | (143 | ) | - | - | - | - | (265 | ) | - | (265 | ) | |||||||||||||||||||||||
Coupons on non-cumulative subordinated notes |
- | (15 | ) | - | - | - | - | (15 | ) | - | (15 | ) | ||||||||||||||||||||||||
Coupons on perpetual securities |
- | (49 | ) | - | - | - | - | (49 | ) | - | (49 | ) | ||||||||||||||||||||||||
Incentive plans |
- | 4 | - | - | - | (19 | ) | (15 | ) | - | (15 | ) | ||||||||||||||||||||||||
At end of period |
8,071 | 8,663 | 4,944 | (1,546 | ) | 278 | 3,779 | 24,188 | 23 | 24,211 | ||||||||||||||||||||||||||
Six months ended June 30, 2016 |
||||||||||||||||||||||||||||||||||||
At beginning of year |
8,387 | 8,075 | 6,471 | (1,532 | ) | 1,283 | 3,800 | 26,485 | 9 | 26,494 | ||||||||||||||||||||||||||
Net income / (loss) recognized in the income statement |
- | (242 | ) | - | - | - | - | (242 | ) | - | (242 | ) | ||||||||||||||||||||||||
Other comprehensive income: |
||||||||||||||||||||||||||||||||||||
Items that will not be reclassified to profit or loss: |
||||||||||||||||||||||||||||||||||||
Changes in revaluation reserve real estate held for own use |
- | - | 2 | - | - | - | 2 | - | 2 | |||||||||||||||||||||||||||
Remeasurements of defined benefit plans |
- | - | - | (1,092 | ) | - | - | (1,092 | ) | - | (1,092 | ) | ||||||||||||||||||||||||
Income tax relating to items that will not be reclassified |
- | - | (1 | ) | 303 | - | - | 303 | - | 303 | ||||||||||||||||||||||||||
Items that may be reclassified subsequently to profit or loss: |
||||||||||||||||||||||||||||||||||||
Gains / (losses) on revaluation of available-for-sale investments |
- | - | 3,888 | - | - | - | 3,888 | - | 3,888 | |||||||||||||||||||||||||||
Gains / (losses) transferred to income statement on disposal and impairment of available-for-sale investments |
- | - | (2,145 | ) | - | - | - | (2,145 | ) | - | (2,145 | ) | ||||||||||||||||||||||||
Changes in cash flow hedging reserve |
- | - | 827 | - | - | - | 827 | - | 827 | |||||||||||||||||||||||||||
Movement in foreign currency translation and net foreign investment hedging reserves |
- | - | (145 | ) | 48 | (526 | ) | - | (623 | ) | - | (623 | ) | |||||||||||||||||||||||
Equity movements of joint ventures |
- | - | - | - | 4 | - | 4 | - | 4 | |||||||||||||||||||||||||||
Equity movements of associates |
- | - | - | - | 1 | - | 1 | - | 1 | |||||||||||||||||||||||||||
Income tax relating to items that may be reclassified |
- | - | (1,020 | ) | - | (7 | ) | - | (1,027 | ) | - | (1,027 | ) | |||||||||||||||||||||||
Other |
- | (1 | ) | - | - | - | - | (1 | ) | 8 | 7 | |||||||||||||||||||||||||
Total other comprehensive income |
- | (1 | ) | 1,406 | (741 | ) | (527 | ) | - | 138 | 8 | 145 | ||||||||||||||||||||||||
Total comprehensive income / (loss) for 2016 |
- | (243 | ) | 1,406 | (741 | ) | (527 | ) | - | (104 | ) | 8 | (96 | ) | ||||||||||||||||||||||
Shares issued |
1 | - | - | - | - | - | 1 | - | 1 | |||||||||||||||||||||||||||
Issuance and purchase of (treasury) shares |
- | (295 | ) | - | - | - | - | (295 | ) | - | (295 | ) | ||||||||||||||||||||||||
Dividends paid on common shares |
(80 | ) | (151 | ) | - | - | - | - | (231 | ) | - | (231 | ) | |||||||||||||||||||||||
Coupons on non-cumulative subordinated notes |
- | (14 | ) | - | - | - | - | (14 | ) | - | (14 | ) | ||||||||||||||||||||||||
Coupons on perpetual securities |
- | (50 | ) | - | - | - | - | (50 | ) | - | (50 | ) | ||||||||||||||||||||||||
Incentive plans |
- | (10 | ) | - | - | - | (16 | ) | (26 | ) | - | (26 | ) | |||||||||||||||||||||||
At end of period |
8,308 | 7,313 | 7,878 | (2,273 | ) | 755 | 3,784 | 25,766 | 17 | 25,782 |
1 For a breakdown of share capital please refer to note 18.
2 Issued capital and reserves attributable to owners of Aegon N.V.
Unaudited |
6
|
Condensed consolidated cash flow statement
|
||||||||
EUR millions | YTD 2017 | YTD 2016 | ||||||
Cash flow from operating activities |
728 | 2,631 | ||||||
Purchases and disposals of intangible assets |
(4) | (13) | ||||||
Purchases and disposals of equipment and other assets |
(36) | (28) | ||||||
Purchases and disposals of businesses and subsidiaries |
(1,021) | (787) | ||||||
Purchases, disposals and dividends joint ventures and associates |
(4) | 62 | ||||||
Cash flow from investing activities |
(1,066) | (766) | ||||||
Issuance of treasury shares |
2 | - | ||||||
Purchase of treasury shares |
- | (402) | ||||||
Dividends paid |
(143) | (151) | ||||||
Issuances, repurchases and coupons of perpetuals |
(65) | (67) | ||||||
Issuances, repurchases and coupons of non-cumulative subordinated notes |
(19) | (19) | ||||||
Issuances and repayments of borrowings |
2,231 | (221) | ||||||
Cash flow from financing activities |
2,005 | (859) | ||||||
Net increase / (decrease) in cash and cash equivalents |
1,668 | 1,006 | ||||||
Net cash and cash equivalents at January 1 |
11,347 | 9,593 | ||||||
Effects of changes in foreign exchange rates |
(138) | (131) | ||||||
Net cash and cash equivalents at end of period |
12,876 | 10,468 | ||||||
|
||||||||
Cash and cash equivalents |
12,880 | 10,482 | ||||||
Cash and cash equivalents classified as Assets held for sale |
- | - | ||||||
Bank overdrafts classified as other liabilities |
(4) | (14) | ||||||
Net cash and cash equivalents |
12,876 | 10,468 |
Unaudited |
Condensed Consolidated Interim Financial Statements 2Q 2017 |
7
|
Notes to the Condensed consolidated interim financial statements
Amounts in EUR millions, unless otherwise stated
Aegon N.V., incorporated and domiciled in the Netherlands, is a public limited liability company organized under Dutch law and recorded in the Commercial Register of The Hague under number 27076669 and with its registered address at Aegonplein 50, 2591 TV, The Hague, the Netherlands. Aegon N.V. serves as the holding company for the Aegon Group and has listings of its common shares in Amsterdam and New York.
Aegon N.V. (or the Company) and its subsidiaries (Aegon or the Group) have life insurance and pensions operations in more than 20 countries in the Americas, Europe and Asia and are also active in savings and asset management operations, accident and health insurance, general insurance and to a limited extent banking operations. Headquarters are located in The Hague, the Netherlands. The Group employs over 29,000 people worldwide.
1. Basis of presentation
The condensed consolidated interim financial statements as at and for the period ended, June 30, 2017, have been prepared in accordance with IAS 34 Interim Financial Reporting, as adopted by the European Union (hereafter IFRS). They do not include all of the information required for a full set of financial statements prepared in accordance with IFRS and should therefore be read together with the 2016 consolidated financial statements of Aegon N.V. as included in Aegons Annual Report for 2016. Aegons Annual Report for 2016 is available on its website (aegon.com).
The condensed consolidated interim financial statements have been prepared in accordance with the historical cost convention as modified by the revaluation of investment properties and those financial instruments (including derivatives) and financial liabilities that have been measured at fair value. Certain amounts in prior periods may have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income, shareholders equity or earnings per share. The condensed consolidated interim financial statements as at, and for the period ended June 30, 2017, were approved by the Executive Board on August 9, 2017.
The condensed consolidated interim financial statements are presented in euro (EUR) and all values are rounded to the nearest million unless otherwise stated. The consequence is that the rounded amounts may not add up to the rounded total in all cases.
The published figures in these condensed consolidated interim financial statements are unaudited.
Unaudited |
8
|
2. Significant accounting policies
All accounting policies and methods of computation applied in the condensed consolidated interim financial statements are the same as those applied in the 2016 consolidated financial statements.
New IFRS accounting standards effective
The following standards, interpretations, amendments to standards and interpretations became effective in 2017, but have not yet been endorsed by the European Union:
◆ |
IAS 7 Amendment Disclosure Initiative; | |
◆ |
IAS 12 Recognition of Deferred Tax Assets for Unrealised Losses; and | |
◆ |
Annual improvements 2014-2016 Cycle. |
None of these revised standards and interpretations will significantly impact the financial position or the condensed consolidated interim financial statements.
For a complete overview of IFRS standards, published before January 1, 2017, that will be applied in future years, and were not early adopted by the Group, please refer to Aegons Annual Report for 2016.
Future adoption of IFRS accounting standards
The IASB has issued IFRS 17 Insurance Contracts. IFRS 17 will be mandatorily effective for annual reporting periods beginning on or after January 1, 2021. It aims to provide a more consistent accounting model for insurance contracts among entities issuing insurance contracts globally. IFRS 17, together with IFRS 9 Financial Instruments, will fundamentally change the accounting in IFRS financial statements of insurance companies. Aegon has started its implementation project on both standards. Aegon expects the impact of the standards to be significant.
The endorsement process of the European Union of the new standard is expected to start in 2017. A final endorsement decision is not expected to be made in 2017.
Taxes
Taxes on income for the three month period, ended June 30, 2017, are calculated using the tax rate that is estimated to be applicable to total annual earnings.
Judgments and critical accounting estimates
Preparing the condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions, including the likelihood, timing or amount of future transactions or events, that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from the estimates made.
In preparing the condensed consolidated interim financial statements, significant judgments made by management in applying the Groups accounting policies and the key sources of estimating uncertainty were not significantly different than those that were applied to the consolidated financial statements as at and for the year ended December 31, 2016.
Unaudited |
Condensed Consolidated Interim Financial Statements 2Q 2017 |
9
|
Exchange rates
Assets and liabilities are translated at the closing rates on the reporting date. Income, expenses and capital transactions (such as dividends) are translated at average exchange rates or at the prevailing rates on the transaction date, if more appropriate. The following exchange rates are applied for the condensed consolidated interim financial statements:
Closing exchange rates
USD | GBP | |||||||||||||||
June 30, 2017 |
1 | EUR | 1.1406 | 0.8781 | ||||||||||||
December 31, 2016 |
1 | EUR | 1.0548 | 0.8536 | ||||||||||||
Weighted average exchange rates |
|
|||||||||||||||
USD | GBP | |||||||||||||||
Six months ended June 30, 2017 |
1 | EUR | 1.0822 | 0.8596 | ||||||||||||
Six months ended June 30, 2016 |
1 | EUR | 1.1160 | 0.7784 |
3. Segment information
3.1 Income statement
EUR millions | Americas | The Netherlands |
United Kingdom |
Central & Eastern Europe |
Spain & Portugal |
Europe | Asia | Asset Management |
Holding and activities |
Eliminations | Segment total |
Joint ventures and associates eliminations |
Consolidated | |||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2017 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying earnings before tax |
341 | 136 | 35 | 19 | 5 | 195 | 11 | 32 | (44 | ) | - | 535 | 17 | 551 | ||||||||||||||||||||||||||||||||||||||
Fair value items |
(33 | ) | (138 | ) | (27 | ) | - | - | (165 | ) | (1 | ) | - | 8 | - | (191 | ) | (25 | ) | (216 | ) | |||||||||||||||||||||||||||||||
Realized gains / (losses) on investments |
19 | 85 | 3 | 1 | - | 89 | 2 | - | - | - | 111 | (3 | ) | 108 | ||||||||||||||||||||||||||||||||||||||
Impairment charges |
(6 | ) | (5 | ) | - | (2 | ) | - | (7 | ) | - | - | - | - | (12 | ) | - | (12 | ) | |||||||||||||||||||||||||||||||||
Impairment reversals |
10 | 4 | - | - | - | 4 | - | - | - | - | 14 | - | 14 | |||||||||||||||||||||||||||||||||||||||
Other income / (charges) |
228 | (8 | ) | 72 | - | - | 64 | - | (1 | ) | - | - | 291 | - | 291 | |||||||||||||||||||||||||||||||||||||
Run-off businesses |
10 | - | - | - | - | - | - | - | - | - | 10 | - | 10 | |||||||||||||||||||||||||||||||||||||||
Income / (loss) before tax |
570 | 74 | 83 | 18 | 5 | 180 | 12 | 32 | (36 | ) | - | 757 | (11 | ) | 746 | |||||||||||||||||||||||||||||||||||||
Income tax (expense) / benefit |
(171 | ) | (15 | ) | (26 | ) | (2 | ) | (2 | ) | (45 | ) | (13 | ) | (10 | ) | 9 | - | (228 | ) | 11 | (217 | ) | |||||||||||||||||||||||||||||
Net income / (loss) |
399 | 59 | 57 | 16 | 3 | 135 | (1 | ) | 22 | (27 | ) | - | 529 | - | 529 | |||||||||||||||||||||||||||||||||||||
Inter-segment underlying earnings |
(17 | ) | (29 | ) | (25 | ) | (3 | ) | - | (57 | ) | (1 | ) | 57 | 18 | |||||||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums |
1,866 | 359 | 2,587 | 101 | 51 | 3,098 | 227 | - | 2 | (2 | ) | 5,191 | (133 | ) | 5,058 | |||||||||||||||||||||||||||||||||||||
Accident and health insurance |
559 | 30 | 8 | - | 1 | 40 | 22 | - | - | - | 621 | (2 | ) | 619 | ||||||||||||||||||||||||||||||||||||||
General insurance |
- | 37 | - | 56 | 25 | 119 | - | - | - | - | 118 | (25 | ) | 93 | ||||||||||||||||||||||||||||||||||||||
Total gross premiums |
2,425 | 427 | 2,595 | 157 | 78 | 3,257 | 249 | - | 2 | (3 | ) | 5,930 | (160 | ) | 5,770 | |||||||||||||||||||||||||||||||||||||
Investment income |
838 | 569 | 524 | 12 | 9 | 1,114 | 60 | 1 | 77 | (76 | ) | 2,014 | (11 | ) | 2,002 | |||||||||||||||||||||||||||||||||||||
Fee and commission income |
406 | 88 | 60 | 10 | 4 | 162 | 14 | 147 | - | (59 | ) | 670 | (39 | ) | 631 | |||||||||||||||||||||||||||||||||||||
Other revenues |
1 | - | - | - | 2 | 3 | - | - | 1 | - | 5 | (1 | ) | 4 | ||||||||||||||||||||||||||||||||||||||
Total revenues |
3,670 | 1,084 | 3,180 | 179 | 93 | 4,536 | 322 | 148 | 81 | (137 | ) | 8,619 | (212 | ) | 8,407 | |||||||||||||||||||||||||||||||||||||
Inter-segment revenues |
- | - | - | - | - | - | 1 | 59 | 78 |
EUR millions | Americas | The Netherlands |
United Kingdom |
Central & Eastern Europe |
Spain & Portugal |
Europe | Asia | Asset Management |
Holding and activities |
Eliminations | Segment total |
Joint ventures and associates eliminations |
Consolidated | |||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2016 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying earnings before tax |
270 | 138 | 7 | 14 | - | 160 | 1 | 37 | (35 | ) | 2 | 435 | 4 | 439 | ||||||||||||||||||||||||||||||||||||||
Fair value items |
(107 | ) | (185 | ) | (6 | ) | - | - | (190 | ) | (7 | ) | - | (54 | ) | - | (358 | ) | (9 | ) | (367 | ) | ||||||||||||||||||||||||||||||
Realized gains / (losses) on investments |
4 | 93 | 131 | - | (1 | ) | 223 | 1 | 1 | - | - | 229 | (2 | ) | 227 | |||||||||||||||||||||||||||||||||||||
Impairment charges |
(23 | ) | (8 | ) | - | - | - | (8 | ) | - | - | (3 | ) | - | (35 | ) | - | (35 | ) | |||||||||||||||||||||||||||||||||
Impairment reversals |
8 | 4 | - | - | - | 4 | - | - | - | - | 12 | - | 12 | |||||||||||||||||||||||||||||||||||||||
Other income / (charges) |
41 | (20 | ) | (681 | ) | - | - | (701 | ) | - | - | 4 | - | (656 | ) | - | (656 | ) | ||||||||||||||||||||||||||||||||||
Run-off businesses |
18 | - | - | - | - | - | - | - | - | - | 18 | - | 18 | |||||||||||||||||||||||||||||||||||||||
Income / (loss) before tax |
211 | 22 | (548 | ) | 14 | - | (512 | ) | (5 | ) | 38 | (88 | ) | 2 | (355 | ) | (7 | ) | (362 | ) | ||||||||||||||||||||||||||||||||
Income tax (expense) / benefit |
(40 | ) | (4 | ) | 14 | (3 | ) | (2 | ) | 6 | (5 | ) | (14 | ) | 22 | - | (30 | ) | 7 | (23 | ) | |||||||||||||||||||||||||||||||
Net income / (loss) |
171 | 19 | (533 | ) | 11 | (3 | ) | (506 | ) | (10 | ) | 24 | (66 | ) | 2 | (385 | ) | - | (385 | ) | ||||||||||||||||||||||||||||||||
Inter-segment underlying earnings |
(46 | ) | (27 | ) | (23 | ) | (4 | ) | - | (53 | ) | 19 | 58 | 23 | ||||||||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums |
1,798 | 358 | 2,516 | 100 | 47 | 3,021 | 278 | - | 1 | (21 | ) | 5,077 | (102 | ) | 4,975 | |||||||||||||||||||||||||||||||||||||
Accident and health insurance |
553 | 30 | 8 | - | - | 39 | 23 | - | 3 | (1 | ) | 616 | (2 | ) | 615 | |||||||||||||||||||||||||||||||||||||
General insurance |
- | 69 | - | 43 | 25 | 137 | - | - | - | - | 137 | (25 | ) | 112 | ||||||||||||||||||||||||||||||||||||||
Total gross premiums |
2,350 | 458 | 2,524 | 144 | 72 | 3,197 | 301 | - | 4 | (22 | ) | 5,831 | (129 | ) | 5,702 | |||||||||||||||||||||||||||||||||||||
Investment income |
900 | 551 | 555 | 11 | 10 | 1,127 | 56 | 1 | 101 | (100 | ) | 2,085 | (12 | ) | 2,073 | |||||||||||||||||||||||||||||||||||||
Fee and commission income |
406 | 89 | 22 | 9 | 4 | 123 | 15 | 155 | - | (59 | ) | 641 | (44 | ) | 597 | |||||||||||||||||||||||||||||||||||||
Other revenues |
1 | - | - | - | 1 | 1 | 1 | - | 1 | - | 3 | (1 | ) | 2 | ||||||||||||||||||||||||||||||||||||||
Total revenues |
3,658 | 1,098 | 3,101 | 164 | 86 | 4,448 | 372 | 156 | 106 | (181 | ) | 8,560 | (185 | ) | 8,374 | |||||||||||||||||||||||||||||||||||||
Inter-segment revenues |
- | - | - | - | - | - | 19 | 59 | 102 |
Unaudited |
10
|
EUR millions | Americas | The Netherlands |
United Kingdom |
Central & Europe |
Spain & Portugal |
Europe | Asia | Asset Management |
Holding and other activities |
Eliminations | Segment total |
Joint |
Consolidated | |||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2017 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying earnings before tax geographically |
653 | 254 | 68 | 36 | 6 | 364 | 23 | 69 | (88 | ) | 1 | 1,022 | 25 | 1,048 | ||||||||||||||||||||||||||||||||||||||
Fair value items |
(53 | ) | (173 | ) | (48 | ) | - | - | (221 | ) | - | - | 30 | - | (244 | ) | (47 | ) | (291 | ) | ||||||||||||||||||||||||||||||||
Realized gains / (losses) on investments |
29 | 147 | 6 | 2 | - | 156 | (1 | ) | 2 | - | - | 187 | (3 | ) | 183 | |||||||||||||||||||||||||||||||||||||
Impairment charges |
(11 | ) | (12 | ) | - | (3 | ) | - | (14 | ) | - | - | (2 | ) | - | (28 | ) | - | (28 | ) | ||||||||||||||||||||||||||||||||
Impairment reversals |
12 | 7 | - | - | - | 7 | - | - | - | - | 19 | - | 19 | |||||||||||||||||||||||||||||||||||||||
Other income / (charges) |
226 | (8 | ) | 80 | - | - | 72 | - | (1 | ) | - | - | 297 | - | 297 | |||||||||||||||||||||||||||||||||||||
Run-off businesses |
41 | - | - | - | - | - | - | - | - | - | 41 | - | 41 | |||||||||||||||||||||||||||||||||||||||
Income / (loss) before tax |
897 | 215 | 107 | 36 | 6 | 363 | 22 | 71 | (60 | ) | 1 | 1,294 | (25 | ) | 1,268 | |||||||||||||||||||||||||||||||||||||
Income tax (expense) / benefit |
(257 | ) | (45 | ) | (44 | ) | (5 | ) | (4 | ) | (98 | ) | (26 | ) | (22 | ) | 15 | - | (387 | ) | 25 | (362 | ) | |||||||||||||||||||||||||||||
Net income / (loss) |
641 | 170 | 63 | 31 | 2 | 265 | (4 | ) | 49 | (45 | ) | 1 | 907 | - | 907 | |||||||||||||||||||||||||||||||||||||
Inter-segment underlying earnings |
(36 | ) | (59 | ) | (47 | ) | (6 | ) | (1 | ) | (113 | ) | (2 | ) | 114 | 37 | ||||||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums |
3,832 | 1,052 | 4,474 | 203 | 105 | 5,835 | 552 | - | 4 | (5 | ) | 10,217 | (327 | ) | 9,890 | |||||||||||||||||||||||||||||||||||||
Accident and health insurance |
1,122 | 140 | 16 | 1 | 83 | 240 | 55 | - | - | - | 1,417 | (15 | ) | 1,402 | ||||||||||||||||||||||||||||||||||||||
General insurance |
- | 77 | - | 110 | 49 | 237 | - | - | 1 | (1 | ) | 237 | (49 | ) | 187 | |||||||||||||||||||||||||||||||||||||
Total gross premiums |
4,954 | 1,270 | 4,490 | 314 | 237 | 6,312 | 607 | - | 4 | (5 | ) | 11,871 | (392 | ) | 11,479 | |||||||||||||||||||||||||||||||||||||
Investment income |
1,810 | 1,117 | 796 | 24 | 18 | 1,955 | 125 | 2 | 156 | (154 | ) | 3,893 | (28 | ) | 3,866 | |||||||||||||||||||||||||||||||||||||
Fee and commission income |
802 | 175 | 122 | 20 | 7 | 324 | 30 | 300 | - | (118 | ) | 1,336 | (84 | ) | 1,252 | |||||||||||||||||||||||||||||||||||||
Other revenues |
2 | - | - | - | 3 | 3 | - | - | 2 | - | 8 | (2 | ) | 5 | ||||||||||||||||||||||||||||||||||||||
Total revenues |
7,567 | 2,561 | 5,409 | 357 | 266 | 8,593 | 762 | 301 | 162 | (277 | ) | 17,108 | (506 | ) | 16,602 | |||||||||||||||||||||||||||||||||||||
Inter-segment revenues |
- | - | - | - | - | - | 2 | 118 | 157 |
EUR millions | Americas | The Netherlands |
United Kingdom |
Central & Europe |
Spain & Portugal |
Europe | Asia | Asset Management |
Holding and other activities |
Eliminations | Segment total |
Joint |
Consolidated | |||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2016 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying earnings before tax geographically |
554 | 267 | 30 | 29 | 3 | 330 | 1 | 82 | (72 | ) | 2 | 897 | 10 | 907 | ||||||||||||||||||||||||||||||||||||||
Fair value items |
(327 | ) | (289 | ) | 28 | - | - | (261 | ) | (5 | ) | - | (123 | ) | - | (716 | ) | (22 | ) | (737 | ) | |||||||||||||||||||||||||||||||
Realized gains / (losses) on investments |
37 | 111 | 132 | (1 | ) | (2 | ) | 240 | 5 | 1 | - | - | 283 | (3 | ) | 280 | ||||||||||||||||||||||||||||||||||||
Impairment charges |
(57 | ) | (14 | ) | - | 2 | - | (12 | ) | (1 | ) | - | (7 | ) | 1 | (76 | ) | - | (76 | ) | ||||||||||||||||||||||||||||||||
Impairment reversals |
10 | 8 | - | - | - | 8 | - | - | - | (1 | ) | 17 | - | 17 | ||||||||||||||||||||||||||||||||||||||
Other income / (charges) |
35 | (20 | ) | (680 | ) | - | - | (700 | ) | - | - | 4 | - | (662 | ) | - | (662 | ) | ||||||||||||||||||||||||||||||||||
Run-off businesses |
47 | - | - | - | - | - | - | - | - | - | 47 | - | 47 | |||||||||||||||||||||||||||||||||||||||
Income / (loss) before tax |
298 | 63 | (490 | ) | 30 | 2 | (395 | ) | 1 | 82 | (198 | ) | 2 | (210 | ) | (14 | ) | (224 | ) | |||||||||||||||||||||||||||||||||
Income tax (expense) / benefit |
(33 | ) | (11 | ) | 8 | (5 | ) | (4 | ) | (12 | ) | (10 | ) | (26 | ) | 48 | - | (32 | ) | 14 | (17 | ) | ||||||||||||||||||||||||||||||
Net income / (loss) |
266 | 52 | (482 | ) | 25 | (2 | ) | (407 | ) | (9 | ) | 56 | (150 | ) | 2 | (242 | ) | - | (242 | ) | ||||||||||||||||||||||||||||||||
Inter-segment underlying earnings |
(95 | ) | (50 | ) | (47 | ) | (8 | ) | - | (105 | ) | 37 | 119 | 43 | ||||||||||||||||||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Life insurance gross premiums |
3,568 | 1,217 | 4,531 | 198 | 96 | 6,041 | 576 | - | 2 | (42 | ) | 10,146 | (273 | ) | 9,874 | |||||||||||||||||||||||||||||||||||||
Accident and health insurance |
1,100 | 151 | 19 | 1 | 72 | 243 | 56 | - | 7 | (3 | ) | 1,403 | (13 | ) | 1,390 | |||||||||||||||||||||||||||||||||||||
General insurance |
- | 184 | - | 90 | 48 | 321 | - | - | - | - | 321 | (48 | ) | 273 | ||||||||||||||||||||||||||||||||||||||
Total gross premiums |
4,668 | 1,551 | 4,550 | 288 | 216 | 6,605 | 632 | - | 9 | (44 | ) | 11,871 | (333 | ) | 11,538 | |||||||||||||||||||||||||||||||||||||
Investment income |
1,816 | 1,074 | 985 | 22 | 20 | 2,101 | 112 | 2 | 205 | (203 | ) | 4,033 | (25 | ) | 4,008 | |||||||||||||||||||||||||||||||||||||
Fee and commission income |
824 | 175 | 45 | 18 | 7 | 245 | 29 | 323 | - | (123 | ) | 1,297 | (98 | ) | 1,199 | |||||||||||||||||||||||||||||||||||||
Other revenues |
2 | - | - | - | 1 | 1 | 1 | - | 1 | - | 5 | (1 | ) | 4 | ||||||||||||||||||||||||||||||||||||||
Total revenues |
7,310 | 2,800 | 5,581 | 328 | 243 | 8,951 | 775 | 325 | 215 | (370 | ) | 17,206 | (457 | ) | 16,749 | |||||||||||||||||||||||||||||||||||||
Inter-segment revenues |
- | 1 | - | - | - | 1 | 39 | 124 | 207 |
3.2 Performance measure
Aegons segment information is prepared by consolidating on a proportionate basis Aegons joint ventures and associated companies.
Performance measure
A non-IFRS performance measure of reporting segments utilized by the Company is underlying earnings before tax. Underlying earnings before tax reflects Aegons profit from underlying business operations and excludes components that relate to accounting mismatches that are dependent on market volatility, updates to best estimate actuarial and economic assumptions and model updates or events that are considered outside the normal course of business. Note that, as disclosed in the 2016 Annual Report, Aegon changed the measurement of underlying earnings before tax to exclude the impact of actuarial assumption updates. In addition, updates to economic assumptions previously recorded in fair value items, are recorded in Other income / (charges). These changes resulted in a shift of EUR 20 million (negative) in The Netherlands from Fair value items to Other income/charges in the 2Q 2016 numbers.
Aegon believes that its non-IFRS performance measure, underlying earnings before tax, provides meaningful supplemental information about the underlying results of Aegons business, including insight into the financial measures that Aegons senior management uses in managing the business. Among other things, Aegons senior management is compensated based in part on Aegons results against targets using underlying earnings before tax. While many other insurers in Aegons peer group present substantially similar performance measures, the performance measures presented in this document may nevertheless differ from the performance measures presented by other insurers. There is no standardized meaning to these measures under IFRS or any other recognized set of accounting standards.
Unaudited |
Condensed Consolidated Interim Financial Statements 2Q 2017 |
11
|
The reconciliation from underlying earnings before tax to income before tax, being the most comparable IFRS measure, is presented in the tables in this note.
The items that are excluded from underlying earnings before tax as described further below are: fair value items, realized gain or losses on investments, impairment charges/reversals, other income or charges, run-off businesses and share in earnings of joint ventures and associates.
Fair value items
Fair value items include the over- or underperformance of investments and guarantees held at fair value for which the expected long-term return is included in underlying earnings before tax.
In addition, hedge ineffectiveness on hedge transactions, fair value changes on economic hedges without natural offset in earnings and for which no hedge accounting is applied and fair value movements on real estate are included under fair value items.
Certain assets held by Aegon are carried at fair value and managed on a total return basis, with no offsetting changes in the valuation of related liabilities. These include assets such as investments in hedge funds, private equities, real estate (limited partnerships), convertible bonds and structured products. Underlying earnings before tax exclude any over- or underperformance compared to managements long-term expected return on assets. Based on current holdings and asset returns, the long-term expected return on an annual basis is 8-10%, depending on asset class, including cash income and market value changes. The expected earnings from these asset classes are net of deferred policy acquisition costs (DPAC) where applicable.
In addition, certain products offered by Aegon Americas contain guarantees and are reported on a fair value basis and the total return annuities and guarantees on variable annuities. The earnings on these products are impacted by movements in equity markets and risk-free interest rates. Short-term developments in the financial markets may therefore cause volatility in earnings. Included in underlying earnings before tax is a long-term expected return on these products and excluded is any over- or underperformance compared to managements expected return.
The fair value movements of certain guarantees and the fair value change of derivatives that hedge certain risks on these guarantees of Aegon the Netherlands, VA Europe (included in United Kingdom) and Japan are excluded from underlying earnings before tax, and the long-term expected return for these guarantees is set at zero. In addition, fair value items include market related results on our loyalty bonus reserves in the United Kingdom. The value of these reserves are directly related to policyholder investments which value is directly impacted by movements in equity and bond markets.
Holding and other activities include certain issued bonds that are held at fair value through profit or loss (FVTPL). The interest rate risk on these bonds is hedged using swaps. The fair value movement resulting from changes in Aegons credit spread used in the valuation of these bonds are excluded from underlying earnings before tax and reported under fair value items.
Realized gains or losses on investments
Includes realized gains and losses on available-for-sale investments, mortgage loans and other loan portfolios.
Unaudited |
12
|
Impairment charges/reversals
Impairment charges include impairments on available-for-sale debt securities, shares including the effect of deferred policyholder acquisition costs, mortgage loans and other loan portfolios at amortized cost, joint ventures and associates. Impairment reversals include reversals on available-for-sale debt securities.
Other income or charges
Other income or charges includes: a) items which cannot be directly allocated to a specific line of business; b) the impact of actuarial and economic assumption and model updates used to support calculations of our liabilities for insurance and investment contracts sold to policyholders and related assets; and c) items that are outside the normal course of business, including restructuring charges. In the condensed consolidated interim financial statements, these restructuring charges are included in operating expenses. Actuarial assumption and model updates are recorded in Claims and Benefits in the IFRS income statement.
Run-off businesses
Includes underlying results of business units where management has decided to exit the market and to run-off the existing block of business. Currently, this line includes results related to the run-off of the institutional spread-based business, structured settlements blocks of business, bank-owned and corporate-owned life insurance (BOLI/COLI) business (until April 1, 2017, please refer to note 26 Acquisitions/divestments for more information on the divestment of this business), and the sale of the life reinsurance business in the United States. Aegon has other blocks of business for which sales have been discontinued and of which the earnings are included in underlying earnings before tax.
Share in earnings of joint ventures and associates
Earnings from Aegons joint ventures in the Netherlands, Mexico, Spain, Portugal, China and Japan and Aegons associates in India, Brazil, the Netherlands, United Kingdom, Mexico and France are reported on an underlying earnings before tax basis.
Unaudited |
Condensed Consolidated Interim Financial Statements 2Q 2017 |
13
|
3.3 Investments
Amounts included in the tables on investments are presented on an IFRS basis.
EUR millions | ||||||||||||||||||||||||||||||||||||||||||||
June 30, 2017 | Americas | The Netherlands |
United Kingdom |
Central & Eastern Europe |
Spain & Portugal |
Europe | Asia | Asset Management |
Holdings and other activities |
Eliminations | Total EUR |
|||||||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||||||||||||||||||
Shares |
708 | 629 | 106 | 54 | 5 | 795 | 1 | 2 | 62 | - | 1,567 | |||||||||||||||||||||||||||||||||
Debt securities |
57,680 | 21,338 | 1,984 | 671 | 660 | 24,653 | 5,095 | - | - | - | 87,429 | |||||||||||||||||||||||||||||||||
Loans |
8,955 | 29,477 | - | 292 | 50 | 29,819 | 6 | - | - | - | 38,780 | |||||||||||||||||||||||||||||||||
Other financial assets |
10,114 | 321 | 131 | 7 | 5 | 463 | - | 144 | 21 | - | 10,742 | |||||||||||||||||||||||||||||||||
Investments in real estate |
677 | 1,331 | - | 3 | 15 | 1,349 | - | - | - | - | 2,026 | |||||||||||||||||||||||||||||||||
Investments general account |
78,134 | 53,096 | 2,221 | 1,028 | 734 | 57,079 | 5,102 | 146 | 83 | - | 140,544 | |||||||||||||||||||||||||||||||||
Shares |
- | 9,408 | 15,199 | 294 | 14 | 24,916 | - | - | - | (5 | ) | 24,910 | ||||||||||||||||||||||||||||||||
Debt securities |
3,399 | 13,950 | 9,849 | 236 | 9 | 24,044 | - | - | - | - | 27,444 | |||||||||||||||||||||||||||||||||
Unconsolidated investment funds |
100,148 | - | 37,191 | 880 | 70 | 38,142 | - | - | - | - | 138,290 | |||||||||||||||||||||||||||||||||
Other financial assets |
664 | 2,634 | 3,659 | 7 | 1 | 6,301 | - | - | - | - | 6,965 | |||||||||||||||||||||||||||||||||
Investments in real estate |
- | - | 669 | - | - | 669 | - | - | - | - | 669 | |||||||||||||||||||||||||||||||||
Investments for account of policyholders |
104,212 | 25,992 | 66,567 | 1,418 | 94 | 94,071 | - | - | - | (5 | ) | 198,278 | ||||||||||||||||||||||||||||||||
Investments on balance sheet |
182,346 | 79,088 | 68,789 | 2,446 | 828 | 151,151 | 5,102 | 146 | 83 | (5 | ) | 338,822 | ||||||||||||||||||||||||||||||||
Off balance sheet investments third parties |
233,375 | 997 | 108,455 | 3,502 | 531 | 113,485 | 2,733 | 129,530 | - | (1,031 | ) | 478,093 | ||||||||||||||||||||||||||||||||
Total revenue generating investments |
415,722 | 80,085 | 177,243 | 5,948 | 1,360 | 264,636 | 7,835 | 129,676 | 83 | (1,037 | ) | 816,915 | ||||||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale |
63,318 | 20,784 | 2,115 | 717 | 669 | 24,286 | 5,074 | 142 | 21 | - | 92,842 | |||||||||||||||||||||||||||||||||
Loans |
8,955 | 29,477 | - | 292 | 50 | 29,819 | 6 | - | - | - | 38,780 | |||||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss |
109,396 | 27,496 | 66,004 | 1,433 | 94 | 95,028 | 22 | 4 | 62 | (5 | ) | 204,506 | ||||||||||||||||||||||||||||||||
Investments in real estate |
677 | 1,331 | 669 | 3 | 15 | 2,018 | - | - | - | - | 2,694 | |||||||||||||||||||||||||||||||||
Total investments on balance sheet |
182,346 | 79,088 | 68,789 | 2,446 | 828 | 151,151 | 5,102 | 146 | 83 | (5 | ) | 338,822 | ||||||||||||||||||||||||||||||||
Investments in joint ventures |
6 | 931 | - | - | 493 | 1,424 | 128 | 109 | - | - | 1,666 | |||||||||||||||||||||||||||||||||
Investments in associates |
92 | 33 | 8 | 2 | - | 43 | 19 | 119 | (1 | ) | - | 272 | ||||||||||||||||||||||||||||||||
Other assets |
36,595 | 16,533 | 6,053 | 296 | 222 | 23,089 | 2,583 | 285 | 29,899 | (28,602 | ) | 63,864 | ||||||||||||||||||||||||||||||||
Consolidated total assets |
219,039 | 96,585 | 74,849 | 2,744 | 1,543 | 175,707 | 7,832 | 659 | 29,982 | (28,608 | ) | 404,625 |
EUR millions | ||||||||||||||||||||||||||||||||||||||||||||
December 31, 2016 | Americas | The Netherlands |
United Kingdom |
Central & Eastern Europe |
Spain & Portugal |
Europe | Asia | Asset Management |
Holdings and other |
Eliminations | Total EUR |
|||||||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||||||||||||||||||
Shares |
793 | 334 | 84 | 35 | 4 | 457 | - | 2 | 62 | - | 1,314 | |||||||||||||||||||||||||||||||||
Debt securities |
70,766 | 23,741 | 2,036 | 633 | 683 | 27,093 | 5,310 | - | - | - | 103,169 | |||||||||||||||||||||||||||||||||
Loans |
10,820 | 28,627 | - | 303 | 45 | 28,975 | 18 | - | - | - | 39,812 | |||||||||||||||||||||||||||||||||
Other financial assets |
9,924 | 358 | 115 | 10 | - | 483 | - | 88 | 23 | - | 10,519 | |||||||||||||||||||||||||||||||||
Investments in real estate |
743 | 1,238 | - | 3 | 15 | 1,256 | - | - | - | - | 1,999 | |||||||||||||||||||||||||||||||||
Investments general account |
93,046 | 54,298 | 2,236 | 983 | 747 | 58,264 | 5,328 | 90 | 85 | - | 156,813 | |||||||||||||||||||||||||||||||||
Shares |
- | 9,689 | 15,503 | 295 | 13 | 25,499 | - | - | - | (7 | ) | 25,492 | ||||||||||||||||||||||||||||||||
Debt securities |
4,779 | 15,434 | 9,847 | 235 | 10 | 25,526 | - | - | - | - | 30,305 | |||||||||||||||||||||||||||||||||
Unconsolidated investment funds |
102,534 | - | 36,600 | 879 | 64 | 37,543 | - | - | - | - | 140,077 | |||||||||||||||||||||||||||||||||
Other financial assets |
27 | 2,862 | 4,150 | 9 | 1 | 7,022 | - | - | - | - | 7,049 | |||||||||||||||||||||||||||||||||
Investments in real estate |
- | - | 686 | - | - | 686 | - | - | - | - | 686 | |||||||||||||||||||||||||||||||||
Investments for account of policyholders |
107,341 | 27,985 | 66,786 | 1,418 | 88 | 96,276 | - | - | - | (7 | ) | 203,610 | ||||||||||||||||||||||||||||||||
Investments on balance sheet |
200,387 | 82,283 | 69,021 | 2,401 | 834 | 154,540 | 5,328 | 90 | 85 | (7 | ) | 360,423 | ||||||||||||||||||||||||||||||||
Off balance sheet investments third parties |
240,072 | 952 | 5,333 | 3,154 | 507 | 9,946 | 2,734 | 130,889 | - | (864 | ) | 382,776 | ||||||||||||||||||||||||||||||||
Total revenue generating investments |
440,458 | 83,235 | 74,354 | 5,556 | 1,342 | 164,487 | 8,061 | 130,979 | 85 | (871 | ) | 743,200 | ||||||||||||||||||||||||||||||||
Investments |
||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale |
77,918 | 23,044 | 2,152 | 660 | 687 | 26,544 | 5,289 | 87 | 23 | - | 109,860 | |||||||||||||||||||||||||||||||||
Loans |
10,820 | 28,627 | - | 303 | 45 | 28,975 | 18 | - | - | - | 39,812 | |||||||||||||||||||||||||||||||||
Financial assets at fair value through profit or loss |
110,906 | 29,374 | 66,183 | 1,436 | 88 | 97,080 | 21 | 4 | 62 | (7 | ) | 208,066 | ||||||||||||||||||||||||||||||||
Investments in real estate |
743 | 1,238 | 686 | 3 | 15 | 1,942 | - | - | - | - | 2,685 | |||||||||||||||||||||||||||||||||
Total investments on balance sheet |
200,387 | 82,283 | 69,021 | 2,401 | 834 | 154,540 | 5,328 | 90 | 85 | (7 | ) | 360,423 | ||||||||||||||||||||||||||||||||
Investments in joint ventures |
7 | 877 | - | - | 495 | 1,373 | 134 | 99 | - | - | 1,614 | |||||||||||||||||||||||||||||||||
Investments in associates |
95 | 21 | 8 | 2 | - | 30 | 21 | 125 | (1 | ) | - | 270 | ||||||||||||||||||||||||||||||||
Other assets |
31,003 | 15,260 | 12,718 | 293 | 170 | 28,426 | 3,122 | 293 | 31,107 | (30,338 | ) | 63,627 | ||||||||||||||||||||||||||||||||
Consolidated total assets |
231,493 | 98,441 | 81,747 | 2,696 | 1,500 | 184,370 | 8,604 | 607 | 31,192 | (30,345 | ) | 425,935 |
Unaudited |
14
|
4. Premium income and premiums paid to reinsurers
EUR millions |
2Q 2017 | 2Q 2016 | YTD 2017 | YTD 2016 | ||||||||||||
Premium income |
||||||||||||||||
Life insurance |
5,058 | 4,975 | 9,890 | 9,874 | ||||||||||||
Non-life insurance |
712 | 727 | 1,590 | 1,664 | ||||||||||||
Total premium income |
5,770 | 5,702 | 11,479 | 11,538 | ||||||||||||
Accident and health insurance |
619 | 615 | 1,402 | 1,390 | ||||||||||||
General insurance |
93 | 112 | 187 | 273 | ||||||||||||
Non-life Insurance premium income |
712 | 727 | 1,590 | 1,664 | ||||||||||||
Premiums paid to reinsurers 1 |
||||||||||||||||
Life insurance |
1,062 | 757 | 1,813 | 1,403 | ||||||||||||
Non-life insurance |
59 | 63 | 120 | 131 | ||||||||||||
Total premiums paid to reinsurers |
1,121 | 820 | 1,933 | 1,534 | ||||||||||||
Accident and health insurance |
56 | 60 | 114 | 124 | ||||||||||||
General insurance |
3 | 3 | 6 | 7 | ||||||||||||
Non-life Insurance paid to reinsurers |
59 | 63 | 120 | 131 |
1 Premiums paid to reinsurers are recorded within Benefits and expenses in the income statement refer to note 9 - Benefits and expenses.
Premium income Life includes EUR 1,420 million for 2Q 2017 and EUR 2,193 million for YTD 2017 (2Q 2016: EUR 1,317 million, YTD 2016 EUR 2,118 million) of premiums related to insurance policies upgraded to the retirement platform in the UK.
5. Investment income
EUR millions |
2Q 2017 | 2Q 2016 | YTD 2017 | YTD 2016 | ||||||||||||
Interest income |
1,512 | 1,562 | 3,148 | 3,269 | ||||||||||||
Dividend income |
458 | 481 | 650 | 675 | ||||||||||||
Rental income |
33 | 30 | 68 | 64 | ||||||||||||
Total investment income |
2,002 | 2,073 | 3,866 | 4,008 | ||||||||||||
Investment income related to general account |
1,365 | 1,374 | 2,828 | 2,867 | ||||||||||||
Investment income for account of policyholders |
638 | 699 | 1,037 | 1,141 | ||||||||||||
Total |
2,002 | 2,073 | 3,866 | 4,008 |
6. Income from reinsurance ceded
The income from reinsurance ceded increased by EUR 1.0 billion in 2Q 2017 compared to 2Q 2016. This is mainly the result of the new reinsurance transaction related to the pay out annuity business and BOLI/COLI. Due to the transaction the liabilities for insurance contracts increased by EUR 0.9 billion resulting from loss recognition and then were ceded to a reinsurance company. The loss recognition is reflected in the benefits and expenses line (within claims and benefits) and is offset by an equal increase in the income from reinsurance ceded. As a result there is a nil net impact in the income statement. For more details on the divestment of these businesses refer to note 26 Acquisitions/divestments.
Unaudited |
Condensed Consolidated Interim Financial Statements 2Q 2017 |
15
|
7. Results from financial transactions
EUR millions |
2Q 2017 | 2Q 2016 | YTD 2017 | YTD 2016 | ||||||||||||
Net fair value change of general account financial investments at FVTPL other than derivatives |
58 | 7 | 84 | (65) | ||||||||||||
Realized gains /(losses) on financial investments |
143 | 228 | 220 | 281 | ||||||||||||
Gains /(losses) on investments in real estate |
26 | 8 | 50 | 26 | ||||||||||||
Net fair value change of derivatives |
(852) | (272) | (1,296) | 166 | ||||||||||||
Net fair value change on for account of policyholder financial assets at FVTPL |
3,269 | 4,865 | 10,267 | 6,462 | ||||||||||||
Net fair value change on investments in real estate for account of policyholders |
8 | (33) | 15 | (25) | ||||||||||||
Net foreign currency gains /(losses) |
(10) | 7 | (7) | 24 | ||||||||||||
Net fair value change on borrowings and other financial liabilities |
(4) | 6 | - | (3) | ||||||||||||
Realized gains /(losses) on repurchased debt |
(1) | 1 | (1) | 1 | ||||||||||||
Total |
2,637 | 4,817 | 9,332 | 6,867 |
The decrease of the net fair value change on for account of policyholder financial assets at FVTPL in 2Q 2017 compared to 2Q 2016 is mainly driven by equity markets and interest rate movements.
Net fair value change on for accounts of policyholder financial assets at FVTPL is offset by amounts in the Claims and benefits line reported in note 9 - Benefits and expenses.
8. Other income
Other income of EUR 318 million in the second quarter of 2017 mainly related to a book gain of EUR 231 million (USD 250 million) related to the divestment of the payout annuity business and the Bank Owned Life Insurance / Corporate Owned Life Insurance business (BOLI/COLI) in the US. For more details on the divestment of these businesses refer to note 26 Acquisitions/divestments. Furthermore, a release of an expense reserve of EUR 82 million (GBP 71 million) was recorded that was embedded in the liabilities for insurance contracts following the completion of the Part VII transfer to Rothesay Life. For more details on the completion of the Part VII transfer to Rothesay Life refer to note 24 Assets and Liabilities held for sale and note 26 Acquisitions/divestments.
9. Benefits and expenses
EUR millions |
2Q 2017 | 2Q 2016 | YTD 2017 | YTD 2016 | ||||||||||||
Claims and benefits |
11,662 | 13,047 | 25,845 | 23,088 | ||||||||||||
Employee expenses |
569 | 559 | 1,159 | 1,155 | ||||||||||||
Administration expenses |
379 | 320 | 719 | 631 | ||||||||||||
Deferred expenses |
(260) | (311) | (521) | (634) | ||||||||||||
Amortization charges |
191 | 208 | 395 | 484 | ||||||||||||
Total |
12,541 | 13,823 | 27,596 | 24,724 |
The following table provides an analysis of claims and benefits:
EUR millions |
2Q 2017 | 2Q 2016 | YTD 2017 | YTD 2016 | ||||||||||||
Benefits and claims paid life |
5,493 | 5,413 | 11,723 | 10,124 | ||||||||||||
Benefits and claims paid non-life |
496 | 530 | 1,000 | 1,068 | ||||||||||||
Change in valuation of liabilities for insurance contracts |
5,319 | 5,449 | 10,798 | 8,449 | ||||||||||||
Change in valuation of liabilities for investment contracts |
(1,437) | 111 | (976) | 394 | ||||||||||||
Other |
(13) | (10) | (23) | (15) | ||||||||||||
Policyholder claims and benefits |
9,858 | 11,493 | 22,523 | 20,020 | ||||||||||||
Premium paid to reinsurers |
1,121 | 820 | 1,933 | 1,534 | ||||||||||||
Profit sharing and rebates |
6 | 4 | 12 | 11 | ||||||||||||
Commissions |
676 | 729 | 1,377 | 1,524 | ||||||||||||
Total |
11,662 | 13,047 | 25,845 | 23,088 |
Unaudited |
16
|
The lines change in valuation of liabilities for insurance contracts and change in valuation of liabilities for investment contracts reflect changes in technical provisions resulting from net fair value changes on for account of policyholder financial assets at fair value through P&L included in Results from financial transactions (note 7) of EUR 3,269 million (2Q 2016: EUR 4,865 million). In addition, the line change in valuation of liabilities for insurance contracts includes a decrease of technical provisions for life insurance contracts of EUR 161 million (2Q 2016: increase of EUR 1,163 million).
10. Impairment charges/(reversals)
EUR millions |
2Q 2017 | 2Q 2016 | YTD 2017 | YTD 2016 | ||||||||||||
Impairment charges / (reversals) comprise: |
||||||||||||||||
Impairment charges on financial assets, excluding receivables |
11 | 34 | 28 | 79 | ||||||||||||
Impairment reversals on financial assets, excluding receivables |
(14) | (12) | (19) | (17) | ||||||||||||
Impairment charges / (reversals) on non-financial assets and receivables |
- | (2) | 1 | (2) | ||||||||||||
Total |
(3) | 20 | 10 | 60 | ||||||||||||
Impairment charges on financial assets, excluding receivables, from: |
||||||||||||||||
Shares |
- | - | - | 1 | ||||||||||||
Debt securities and money market instruments |
5 | 11 | 11 | 39 | ||||||||||||
Loans |
6 | 10 | 14 | 13 | ||||||||||||
Other |
- | 9 | - | 19 | ||||||||||||
Investments in associates |
- | 3 | 2 | 7 | ||||||||||||
Total |
11 | 34 | 28 | 79 | ||||||||||||
Impairment reversals on financial assets, excluding receivables, from: |
||||||||||||||||
Debt securities and money market instruments |
(10) | (7) | (11) | (8) | ||||||||||||
Loans |
(4) | (5) | (7) | (9) | ||||||||||||
Other |
(1) | - | (1) | - | ||||||||||||
Total |
(14) | (12) | (19) | (17) |
11. Investments
EUR millions | June 30, 2017 | Dec. 31, 2016 | ||
Available-for-sale (AFS) |
92,842 | 109,860 | ||
Loans |
38,780 | 39,812 | ||
Financial assets at fair value through profit or loss (FVTPL) |
6,896 |
5,142 | ||
Financial assets, for general account, excluding derivatives |
138,519 | 154,814 | ||
Investments in real estate |
2,026 |
1,999 | ||
Total investments for general account, excluding derivatives |
140,544 | 156,813 |
Unaudited |
Condensed Consolidated Interim Financial Statements 2Q 2017 |
17
|
Financial assets, for general account, excluding derivatives
|
||||||||||||||||
EUR millions | AFS | FVTPL | Loans | Total | ||||||||||||
Shares |
975 | 592 | - | 1,567 | ||||||||||||
Debt securities |
83,578 | 3,851 | - | 87,429 | ||||||||||||
Money market and other short-term investments |
7,156 | 313 | - | 7,470 | ||||||||||||
Mortgages loans |
- | - | 33,258 | 33,258 | ||||||||||||
Private loans |
- | - | 3,285 | 3,285 | ||||||||||||
Deposits with financial institutions |
- | - | 134 | 134 | ||||||||||||
Policy loans |
- | - | 2,006 | 2,006 | ||||||||||||
Other |
1,133 | 2,140 | 97 | 3,370 | ||||||||||||
June 30, 2017 |
92,842 | 6,896 | 38,780 | 138,519 | ||||||||||||
AFS | FVTPL | Loans | Total | |||||||||||||
Shares |
824 | 490 | - | 1,314 | ||||||||||||
Debt securities |
101,054 | 2,115 | - | 103,169 | ||||||||||||
Money market and other short-term investments |
6,776 | 317 | - | 7,093 | ||||||||||||
Mortgages loans |
- | - | 34,206 | 34,206 | ||||||||||||
Private loans |
- | - | 3,166 | 3,166 | ||||||||||||
Deposits with financial institutions |
- | - | 129 | 129 | ||||||||||||
Policy loans |
- | - | 2,207 | 2,207 | ||||||||||||
Other |
1,206 | 2,219 | 104 | 3,529 | ||||||||||||
December 31, 2016 |
109,860 | 5,142 | 39,812 | 154,814 |
The decrease of EUR 16.3 billion in financial assets, for general account, excluding derivatives compared to December 31, 2016 is mainly driven by the disposal of debt securities related to the divestment of the payout annuity business and Bank Owned Life Insurance / Corporate Owned Life Insurance business (BOLI/COLI) in the Americas next to currency translation adjustments.
12. Investments for account of policyholders
EUR millions | June 30, 2017 | Dec. 31, 2016 | ||
Shares |
24,910 | 25,492 | ||
Debt securities |
27,444 | 30,305 | ||
Money market and short-term investments |
1,882 | 1,231 | ||
Deposits with financial institutions |
2,386 | 2,951 | ||
Unconsolidated investment funds |
138,290 | 140,077 | ||
Other |
2,697 |
2,868 | ||
Total investments for account of policyholders
at fair value |
197,609 | 202,924 | ||
Investment in real estate |
669 |
686 | ||
Total investments for account of policyholders |
198,278 | 203,610 |
13. Reinsurance assets
Reinsurance assets increased by EUR 8.7 billion compared to December 31, 2016 mainly due to the divestment of the payout annuity business and the Bank Owned Life Insurance / Corporate Owned Life Insurance business (BOLI/COLI) in the US. For more details on the divestment of these businesses refer to note 26 Acquisitions/divestments.
14. Derivatives
The movements in fair value of derivatives on both the asset and liability side of the condensed consolidated statement of financial position mainly result from changes in interest rates and other market movements during the period, as well as purchases, disposals and maturities. The divestment of the payout annuity business and Bank Owned Life Insurance / Corporate Owned Life Insurance (BOLI/COLI) business in the Americas contributed to the decrease of derivative assets with EUR 259 million compared to December 31, 2016.
Unaudited |
18
|
15. Fair value
The following tables provide an analysis of financial instruments recorded at fair value on a recurring basis by level of the fair value hierarchy:
Fair value hierarchy
|
||||||||||||||||
EUR millions | Level I | Level II | Level III | Total | ||||||||||||
As at June 30, 2017 |
||||||||||||||||
Financial assets carried at fair value |
||||||||||||||||
Available-for-sale investments |
||||||||||||||||
Shares |
165 | 286 | 524 | 975 | ||||||||||||
Debt securities |
26,808 | 55,219 | 1,551 | 83,578 | ||||||||||||
Money markets and other short-term instruments |
- | 7,156 | - | 7,156 | ||||||||||||
Other investments at fair value |
- | 399 | 734 | 1,133 | ||||||||||||
Total Available-for-sale investments |
26,972 | 63,061 | 2,809 | 92,842 | ||||||||||||
Fair value through profit or loss |
||||||||||||||||
Shares |
332 | 121 | 139 | 592 | ||||||||||||
Debt securities |
1,822 | 2,024 | 5 | 3,851 | ||||||||||||
Money markets and other short-term instruments |
- | 313 | - | 313 | ||||||||||||
Other investments at fair value |
2 | 882 | 1,256 | 2,140 | ||||||||||||
Investments for account of policyholders 1 |
118,098 | 77,747 | 1,765 | 197,609 | ||||||||||||
Derivatives |
56 | 6,988 | 103 | 7,148 | ||||||||||||
Total Fair value through profit or loss |
120,310 | 88,075 | 3,268 | 211,653 | ||||||||||||
Total financial assets at fair value |
147,282 | 151,136 | 6,077 | 304,495 | ||||||||||||
Financial liabilities carried at fair value |
||||||||||||||||
Investment contracts for account of policyholders 2 |
- | 41,042 | 185 | 41,228 | ||||||||||||
Borrowings 3 |
- | 570 | - | 570 | ||||||||||||
Derivatives |
33 | 6,170 | 2,092 | 8,294 | ||||||||||||
Total financial liabilities at fair value | 33 | 47,782 | 2,277 | 50,092 | ||||||||||||
Fair value hierarchy
|
||||||||||||||||
EUR millions | Level I | Level II | Level III | Total | ||||||||||||
As at December 31, 2016 | ||||||||||||||||
Financial assets carried at fair value |
||||||||||||||||
Available-for-sale investments | ||||||||||||||||
Shares | 119 | 312 | 393 | 824 | ||||||||||||
Debt securities | 29,386 | 69,702 | 1,966 | 101,054 | ||||||||||||
Money markets and other short-term instruments | - | 6,776 | - | 6,776 | ||||||||||||
Other investments at fair value | - | 453 | 754 | 1,206 | ||||||||||||
Total Available-for-sale investments | 29,504 | 77,243 | 3,112 | 109,860 | ||||||||||||
Fair value through profit or loss |
||||||||||||||||
Shares | 288 | 152 | 50 | 490 | ||||||||||||
Debt securities | 27 | 2,082 | 6 | 2,115 | ||||||||||||
Money markets and other short-term instruments | - | 317 | - | 317 | ||||||||||||
Other investments at fair value | 1 | 961 | 1,257 | 2,219 | ||||||||||||
Investments for account of policyholders 1 | 125,997 | 75,202 | 1,726 | 202,924 | ||||||||||||
Derivatives | 41 | 8,169 | 108 | 8,318 | ||||||||||||
Total Fair value through profit or loss | 126,355 | 86,883 | 3,146 | 216,384 | ||||||||||||
Total financial assets at fair value | 155,860 | 164,126 | 6,259 | 326,244 | ||||||||||||
Financial liabilities carried at fair value |
||||||||||||||||
Investment contracts for account of policyholders 2 | - | 42,627 | 176 | 42,803 | ||||||||||||
Borrowings 3 | - | 610 | - | 610 | ||||||||||||
Derivatives | 64 | 6,347 | 2,467 | 8,878 | ||||||||||||
Total financial liabilities at fair value | 64 | 49,584 | 2,643 | 52,290 |
1 The investments for account of policyholders included in the table above represents only those investments carried at fair value through profit or loss.
2 The investment contracts for account of policyholders included in the table above represents only those investment contracts carried at fair value.
3 Total borrowings on the statement of financial position contain borrowings carried at amortized cost that are not included in the above schedule.
Unaudited |
Condensed Consolidated Interim Financial Statements 2Q 2017 |
19
|
Significant transfers between Level I, Level II and Level III
Aegons policy is to record transfers of assets and liabilities between Level I, Level II and Level III at their fair values as of the beginning of each reporting period.
The table below shows transfers between Level I and II for financial assets and financial liabilities recorded at fair value on a recurring basis during the six month period ended June 30, 2017.
Fair value transfers |
||||||||||||||
EUR millions | YTD 2017 | Full Year 2016 | ||||||||||||
Transfers Level I to Level II |
Transfers Level II to Level I |
Transfers Level I to Level II |
Transfers Level I | |||||||||||
Financial assets carried at fair value Available-for-sale investments |
||||||||||||||
Debt securities | - | - | 5 | 69 | ||||||||||
Total | - | - | 5 | 69 | ||||||||||
Fair value through profit or loss |
||||||||||||||
Investments for account of policyholders | - | 8 | 3 | (1) | ||||||||||
Total | - | 8 | 3 | (1) | ||||||||||
Total financial assets at fair value | - | 9 | 8 | 68 |
Transfers are identified based on transaction volume and frequency, which are indicative of an active market.
Movements in Level III financial instruments measured at fair value
The following table summarizes the change of all assets and liabilities measured at estimated fair value on a recurring basis using significant unobservable inputs (Level III), including realized and unrealized gains (losses) of all assets and liabilities and unrealized gains (losses) of all assets and liabilities still held at the end of the respective period.
Roll forward of Level III financial instruments
|
| |||||||||||||||||||||||||||||||||||||||||||||||
EUR millions | January 1, 2017 |
Total gains / losses in income statement 1 |
Total gains / losses in OCI 2 |
Purchases | Sales | Settlements | Net exchange differences |
Reclassification | Transfers from Level I and Level II |
Transfers to Level I and Level II |
June 30, 2017 |
Total unrealized gains June 30, 2017 ³ |
||||||||||||||||||||||||||||||||||||
Financial assets carried at fair value available-for-sale investments |
||||||||||||||||||||||||||||||||||||||||||||||||
Shares |